Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Pumpkin Patch cuts annual earnings forecast; shares fall

Pumpkin Patch cuts annual earnings forecast; shares fall

By Tina Morrison

May. 23 (BusinessDesk) - Pumpkin Patch, the second-worst performing stock on New Zealand's All Ordinaries Index the past year, signalled full-year earnings may plummet on sluggish demand and price discounting in its main New Zealand and Australian markets.

After-tax earnings before reorganisation costs may be between $1 million and $3 million in the year ending July 31, down from the company's previous guidance that earnings would be unchanged from the $8.5 million a year earlier, the Auckland-based children's clothing retailer said in a statement. It didn't detail the likely reorganisation costs. The guidance is subject to any material change to trading conditions, exchange rates or international partners' delivery schedules across June and July.

The company's shares dropped 2 percent to 50 cents, and have declined 56 percent the past year, the worst-performer after fellow clothing retailer Postie Plus Group.

"Trading conditions in the company’s key Australian and New Zealand retail markets have remained at levels similar to those experienced across the first-half period," Pumpkin Patch said. "The trading environment is volatile and continues to be dominated by high levels of promotional activity and lacklustre consumer demand especially in Australia where there is little sign of any meaningful improvement in the near term."

Pumpkin Patch expects to provide an update on its strategic review of the company's underperformance and opportunities to boost earnings by the end of June.

"While key long term operational and brand related strategies have not yet been finalised the review to date has identified a range of system and process investment requirements that will generate improvements in underlying earnings and working capital and debt requirements," the company said.

The stock is rated a 'hold' according to the average recommendation of analysts compiled by Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news